business study guide

What are the three main forms of business organization

• corporations, proprietorship's, and stockholders

• partnerships, corporations, and dividends

• sole proprietorship's, partnerships, and corporations

• partner proprietorship's, corporations, and sole partnerships

which is true of a sole proprietorship

• a sole proprietorship is often difficult and complicated to start up

• revenue for a sole proprietorship is usually higher than that for a corporation

• sole proprietors share decision making with others

• profits from a sole proprietorship are only taxed once

what does unlimited liability mean to the owner of a business

• the owner is responsible for all the company's debts

• the owner has limited credit

• the corporation is dissolved when the owner dies

• the company with fail if the owner does not have all the skills to run the business

Which type of business organization is a partnership most like

• limited liability

• sole proprietorship

• corporation

• bank

which is NOT an advantage of forming a corporation

• the company continues even after the owner dies

• there is limited liability for the founder

• raising capital for startup is easier

• profits are taxed twice: at the corporate level and at the shareholder level

In order to become a corporation, what must a business have

• over 500 employees

• double taxation

• a corporate charter

• stock certificates

which business structure contains both the benefits of a small business

• cooperative

• car sharing

• non profit organization

• franchise

Which type of business makes a finished product, such as an automobile

• industry

• manufacturer

• processor

• retailer

how does a product get from a manufacturer to a wholesaler

• by a producer

• by a processor

• by and intermediary

• by a retailer

where do stores get the products that they sell

• industries

• intermediaries

• wholesalers

• retailers